Japan's Nakao Fires Back at Yen Critics

By

Mitsuru Obe

Jan. 24, 2013 3:17 a.m. ET

TOKYO—Amid growing criticism that Japan is engineering a weaker yen and stirring a global currency war, the country's top currency diplomat shot back Thursday, arguing his government's focus is on grappling with the deflation that has gnawed at the domestic economy for two decades, not manipulating the exchange rate.

"Japan has no intention whatsoever of competitive devaluation of the yen," Vice Finance Minister Takehiko Nakao said in an interview. "Let me reiterate that the recent depreciation of the yen...